Selling Notes - Down Payment

Get as much down payment as possible because the higher the amount of down payment to less risk to you and an investor that will purchase from you.

Why?

It has been statistically shown very well that those that have their skin in the game are less likely to default. Most investors that buy notes do not want to foreclose. Investors that buy foreclosure and deal in notes don't mind it if they default.

However, to get a better price for the note you may create or will work with you want down payment.

Can you sell the note for a good price and no down payment? Yes but it will take more seasoning or payments.

It is true that most people do not have down payments but keep in mind that most people have some way of creating a down payment.

The higher the down payment the less the risk, the less the risk the less the return an investor will need which means they will pay higher for your note.

Common interest rates in seller financed mortgage is 10%. As a general rule: Anything above 10% betters the price you will get. Anything less than 10% lessens the price you will get.